A REFORM UK councillor says questions need answering around additional funding for a new cinema scheme in Lichfield.
An additional £5.5million could be committed by Lichfield District Council in order to complete the work at the former Debenhams site and allow the local authority to take full ownership.
The scheme is being developed as part of a joint venture with Evolve Estates, with an agreement made in 2023 that the council would eventually take on the site in its entirety once the new Everyman cinema was up and running.
However, councillors are now being asked to agree the extra cash due to changes in "market conditions, design development and the complexity" of the project.
But Cllr Robin Hall, Burntwood South representative at Staffordshire County Council, said more clarity was needed ahead of the vote on the additional funding.
He said:
"Having followed this project for some time, my concerns have always been commercial rather than political.
"The latest decision significantly changes the nature of the investment. By acquiring full ownership of the development, Lichfield District Council is no longer simply a partner in the project. It now becomes the sole owner, sole landlord and ultimately carries the full commercial risk.
"That inevitably raises important questions which I believe deserve public scrutiny."
The Reform UK representative said the ability of such a facility to survive in Lichfield had always been a worry.
He added:
"My earlier concerns centred on whether the original business case was sufficiently robust.
"Lichfield district has a population of around 112,000, yet the scheme is based around a four-screen premium cinema operating in an increasingly competitive market, with larger cinemas already established in Tamworth, Cannock, Burton, Walsall and Birmingham.
"Since the project was first conceived, the cinema industry has also changed considerably. Admissions remain below pre-pandemic levels and the sector continues to face well-documented structural challenges.
"The council's principal tenant will be Everyman Cinema. While Everyman is a respected premium operator with growing revenues, its published accounts have also reported statutory losses in recent years together with increasing debt. Any prudent landlord investing many millions of pounds would want to understand what those figures mean for the long-term security of the rental income.
"I believe residents are entitled to know what due diligence has been undertaken, whether the business case has been updated to reflect current market conditions, what protections exist should the tenant experience financial difficulty, and what contingency plans are in place if the commercial assumptions do not materialise.
"These are not political questions. They are the sort of questions any experienced board, lender or investor would ask before committing significant sums of money.
"As a county councillor with an extensive background in business, corporate governance and board leadership, I believe it is entirely reasonable to ask whether this investment continues to represent sound value for taxpayers' money."
Cllr Doug Pullen, Conservative leader of Lichfield District Council, said that Cllr Hall had been "selective" with his view of the cinema project – and said his focus should be on dealing with challenges at the county council instead.
"Cllr Hall is, of course, entitled to his opinion, but it is worth remembering he is neither a member of Lichfield District Council nor a resident of the district. This is not a Staffordshire County Council decision – it will be determined by the councillors elected by Lichfield residents to do so, from all political parties, including Reform.
"Like many, I recognise this project is not where any of us wanted it to be, which is precisely why I have stepped in to secure a revised proposal that provides a clearer route to delivery.
"Cllr Hall’s portrayal of Everyman is very selective. Latest results show revenue up 8.8% to £116.6 million, admissions rising to 4.4 million and market share increasing from 5.4% to 5.8%, demonstrating a business continuing to outperform the wider cinema market.
"I hope he will ultimately welcome this major investment in Lichfield’s economy, fully funded from within the district council’s existing approved budgets.
"Meanwhile, the authority he helps lead is dealing with a £43.6million SEND deficit, a £7.1million overspend in older people’s and physical disabilities services, and continuing pressures across children’s services.
"I respectfully suggest his focus is better directed towards those challenges than seeking to influence decisions that rightly belong to Lichfield District Council."
